GermanyKai Pfaffenbach—Reuters/LandovAll in all, 2011 was an unpredictable year for Germany. As the German economy enjoyed a remarkable recovery from the global slowdown, optimism would have been expected to reign throughout the country. Chancellor Angela Merkel’s government struggled, however, with apparent indecisiveness, political challenges from opposition parties, a euro crisis involving a bailout for Greece, and an academic-corruption scandal, all of which left a general feeling of uncertainty and precariousness. The financial crises drew into doubt many financial ideals that Germans had long held, while fundamental constitutional precepts were threatened by new security measures and by the political battle over Stuttgart 21, a controversial building project. On the international stage Germany showed what appeared to be a lack of resolve, drawing into question all that it had stood for over the previous few decades. As a result, Germany faced a period of reflection in which traditional values and ideals were questioned.

Domestic Affairs

The year started with high hopes in the face of the first signs of economic recovery in 2010. Positive perceptions quickly became obscured, however, by the continuation of the euro-zone crises. The financial emergency in Greece and the ever-increasing need to boost the level of aid to that country caused high levels of strife in the German Bundestag (parliament) and within Merkel’s governing coalition. Challenges in Germany’s Federal Constitutional Court came to a head in September when the court finally rendered the decision that the aid packet to Greece was constitutional. The court added a warning, however, as a reminder to the government that the Bundestag needed to be more involved in the decision-making process. This was symptomatic of one of the large social debates throughout the year: was Germany, like many other Western democracies, moving toward a political climate in which the executive would increasingly usurp and undermine the powers of the legislature?

The Constitutional Court’s decision in regard to financial aid to Greece was not a surprise to observers. When the court issued its decision in 2009 concerning the passage of the European Union’s Lisbon Treaty, it had cautioned Germany’s executive branch of government to observe the legitimate separation of powers and called for a strengthening of the parliament at the national level. The fact that two consecutive warnings had been handed to Merkel’s government—both admonishing it to involve the Bundestag more prominently in decisions relating to the EU—added further fuel to the public debate on the executive usurpation of power. The continued reluctance of the government to commit to an early phaseout of nuclear power was another indication of the power struggle between the parliament and the government. Following the nuclear catastrophe that took place in the wake of the earthquake and massive tsunami in Japan early in the year, subsequent high levels of fear and nuclear hysteria in Germany led Merkel’s administration to retrench and fix on a nuclear power phaseout by 2022.

The local parliamentary elections held in many parts of the country in 2011 proved to be a major contributor to the apparent difficulties of the government. Länder (state) elections in Hamburg, Saxony-Anhalt, Rhineland-Palatinate, Hesse, Bremen, Mecklenburg–West Pomerania, Lower Saxony, Berlin, and, especially, Baden Württemberg recorded significant losses for the ruling party. The latter election overshadowed many national and international decisions—from German abstention in the UN Security Council decision in favour of intervention in Libya to decisive financial action in Greece and to the nuclear energy phaseout. Baden Württemberg had been a Christian Democratic Union (CDU) stronghold since the foundation of West Germany after World War II. Therefore, a loss for Merkel’s CDU party in Baden Württemberg would be interpreted as a major loss of face for the chancellor.

For many weeks prior to the elections, doubt was cast over a CDU win in Baden Württemberg because of a controversial building project in Stuttgart, the state’s capital city. Stuttgart 21 was an ambitious building and city-development project that was intended to serve as an international role model for environmental and energy-neutral building and to support the flagging local economy, thus allowing Stuttgart to compete with the other two large economic centres in the country’s south, Frankfurt and Munich. During the election campaign the opposition parties denounced the enterprise and encouraged xenophobic hysteria among voters relating to fears that the building project would be opening Stuttgart’s inner-city area to large-scale apartment-building projects. This and worries over the initial high cost of the development, which included an enlarged main railway station complex, were enough to win the regional elections within the capital for the opposition and to seriously damage the Christian Democrats. In the end the CDU, which had controlled the state for over 50 years, took 39% of the vote in Baden Württemberg, and the party was forced to give way to a coalition government between the Green Party (24.2%) and the Social Democratic Party (SPD; 23.1%).

Even after the elections, Stuttgart 21 continued to wreak havoc with German politics. The opposition’s promise to halt the project was neither legally nor economically feasible. Moreover, the opposition promised moves toward direct democracy with an increased use of referenda. This would necessitate a constitutional change because the German constitution, as a result of lessons learned from the Third Reich, did not accommodate referenda. Although this would be a difficult promise to keep, especially in a coalition government, it did open a nationwide public and political debate on the desirability of constitutional change to permit referenda and to create pathways for increased public involvement in day-to-day political decision making.

International Affairs

In the international arena, Germany unexpectedly found itself on the same side as Russia and China, in opposition to all of the other Western powers, in its refusal to support military intervention in Libya. In Germany, where the country’s history under the Third Reich still had repercussions, there was a deep-seated public abhorrence of making a commitment to military intervention. Any decision to send troops into any form of conflict was widely unpopular in Germany—and with the CDU’s precarious situation in the state elections scheduled to take place just days later—Merkel ordered the German representative to abstain in the UN Security Council vote that would have committed Germany to aiding in the action in Libya.

The decision for a quick nuclear phaseout, which was very popular with the German public, made the governments of some other Western countries uncomfortable, especially since it would increase Germany’s reliance on Russian natural gas resources to a level of almost absolute dependency. The fact that the international heads of state learned of this resolution from the news agencies rather than through a courtesy phone call from Merkel did not endear the chancellor to those other leaders and changed Merkel’s image in the international community from the “new iron lady” to that of a political leader desperately grappling to preserve her power base.

Economic Affairs

This image of a struggling government was reinforced by the slow and constantly changing postures Germany took throughout the Greek crisis and the wider critical implications for the survival of the euro. During the previous two decades, Germany had increasingly resented its position as the paymaster of Europe, and even prior to 2011, it had been slow to commit funds that were greater than those that other large member countries designated to EU ventures. Germany had always been decisive in its actions and ready to align the EU interests with its own. Therefore, the evident indecisiveness regarding aid to Greece not only undermined Germany’s position in the international community but also contributed to the lack of trust in the euro. In late September the Bundestag finally gave its approval for Germany to join the euro-zone bailout of Greece.

Internally, Germany completed its stringent social security reforms and austerity measures, and the continued increase in GDP growth, even with the looming euro crisis, led to initial economic optimism. After GDP growth of more than 3.5% in 2010, economists anticipated a slowdown to 2.9% in 2011, and in October analysts predicted a drop to only 0.8% in 2012. The debate continued on whether the top 20% of income earners in Germany should pay more than 50% of the federal income tax collected, a dispute that aggravated the traditional political alienation between the left-wing parties and the centrist parties. Nonetheless, the seasonally adjusted unemployment rate, which had hovered around 9.7% from 1991 to 2010, dropped to 6.8% in December 2011.

Cultural Affairs

The German trust in the country’s educational system as well as its government was further undermined by various corruption scandals surrounding the academic titles granted to a number of individuals. In early March, Defense Minister Karl-Theodor zu Guttenberg resigned from office after he admitted that he had plagiarized parts of his doctoral dissertation. Guttenberg had been a distinguished figure in the Christian Social Union (CSU), the CDU’s Bavarian partner. Other prominent politicians were also found guilty of having plagiarized in their Ph.D. theses, notably Silvana Koch-Mehrin, a Free Democratic Party member of the European Parliament. German universities were notoriously insular and disconnected from the international arena in most subjects, but nationally high levels of trust and pride had existed in the educational system. Over the previous decade there had been recurrent political attempts to force German universities into greater transparency and competitiveness, and it was yet to be seen if the plagiarism scandal could achieve what politicians had failed to accomplish.

As elsewhere in the Western world, German authorities expressed worries that citizens were increasingly willing to resort to violent protests. On the occasion of an anti-neo-Nazi demonstration in February, protesters from both sides clashed, and violence ensued. Tempers flared regarding Stuttgart 21 throughout the year, with individuals on both sides resorting to violence and inflicting property damage. The dispute over Stuttgart 21 culminated in the summer with the serious injury of nine policemen, who had been attempting to regulate a demonstration against the project.

In sports, Germany hosted the FIFA women’s association football (soccer) World Cup in 2011. The title was taken by newcomer Japan in a final against the highly favoured U.S. Although Germany, the two-time defending champion, lost to Japan in the quarterfinals, the enthusiastic German fans showed the same high hospitality standards they had shown throughout the men’s FIFA World Cup in 2006. In Formula 1 Grand Prix auto racing, 24-year-old Sebastian Vettel, competing for Red Bull, managed to secure the world drivers’ title for a second consecutive year, becoming the youngest double world champion in the history of Formula 1 racing.

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